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90_HB1481 SEE INDEX Creates the Illinois Procurement Code. Provides for the purchasing of supplies, services, and construction and, until 1998, the leasing of real property and capital improvements by the State. Establishes a Procurement Policy Board appointed by the Governor to promulgate procurement policies and rules. Provides for a Chief Procurement Officer appointed by the Board to oversee implementation of its policies. Grants general procurement and rulemaking authority to 16 State purchasing officers appointed by State officers of the executive, legislative, and judicial branches and the governing boards of State colleges and universities. Permits delegation of procurement authority under certain circumstances. Grants procurement authority for professional or artistic services to individual State entities. Makes competitive sealed bidding the required method of source selection, with exceptions for procurements of a small, emergency, or sole source nature. Provides for procurement preferences, contract requirements, auditing, prohibitions, and penalties. Amends the Governmental Joint Purchasing Act and repeals various Acts and Sections of Acts governing State purchasing. Effective immediately. LRB9002279DNsb LRB9002279DNsb 1 AN ACT to create the Illinois Procurement Code, and to 2 amend and repeal certain named Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 ARTICLE 1 6 GENERAL PROVISIONS 7 Section 1-1. Short title. This Act may be cited as the 8 Illinois Procurement Code. 9 Section 1-5. Public policy. It is the purpose of this 10 Code and is declared to be the policy of the State that the 11 principles of competitive bidding and economical procurement 12 practices shall be applicable to all purchases and contracts 13 by or for any State agency. 14 Section 1-10. Application. This Code applies only to 15 contracts entered into after the effective date of this Code 16 unless the parties agree to its application to a contract 17 entered into before the effective date. 18 Section 1-15. Definitions. For the purposes of this 19 Code, the words set forth in the following Sections of this 20 Article have the meanings set forth in those Sections. 21 Section 1-15.05. Board. "Board" means the Procurement 22 Policy Board. 23 Section 1-15.10. Business. "Business" means any 24 corporation, partnership, individual, sole proprietorship, 25 joint stock company, joint venture, or other private legal 26 entity. -2- LRB9002279DNsb 1 Section 1-15.15. Chief Procurement Officer. "Chief 2 Procurement Officer" means that person designated as such by 3 the Procurement Policy Board. 4 Section 1-15.20. Construction. "Construction" means 5 building, altering, repairing, improving, or demolishing any 6 public structure or building, or making improvements of any 7 kind to public real property. Construction does not include 8 the routine operation, routine repair, or routine maintenance 9 of existing structures, buildings, or real property. 10 Section 1-15.25. Construction agency. "Construction 11 agency" means the Capital Development Board for construction 12 or remodeling of State-owned facilities; the Illinois 13 Department of Transportation for construction or maintenance 14 of roads, highways, bridges, and airports; the Illinois Toll 15 Highway Authority for construction or maintenance of toll 16 highways; and any other State agency entering into 17 construction contracts as authorized by law or by delegation 18 from the Procurement Policy Board. 19 Section 1-15.30. Contract. "Contract" means all types 20 of State agreements, regardless of what they may be called, 21 for the procurement, use, or disposal of supplies, services, 22 professional or artistic services, construction, or real 23 property or capital improvement leases, and including master 24 contracts and contracts for financing through use of 25 installment or lease-purchase arrangements. 26 Section 1-15.35. Cost-reimbursement contract. 27 "Cost-reimbursement contract" means a contract under which a 28 contractor is reimbursed for costs that are allowable and 29 allocable in accordance with the contract terms and the 30 provisions of this Code, and a fee, if any. -3- LRB9002279DNsb 1 Section 1-15.40. Council. "Council" means the 2 Procurement Advisory Council. 3 Section 1-15.45. Invitation for bids. "Invitation for 4 bids" means the process by which a purchasing agency requests 5 information from bidders, including all documents, whether 6 attached or incorporated by reference, used for soliciting 7 bids. 8 Section 1-15.50. Negotiation. "Negotiation" means the 9 process of selecting a contractor other than by competitive 10 sealed bids, multi-step sealed bidding, or competitive sealed 11 proposals, whereby a purchasing agency can establish any and 12 all terms and conditions of a procurement contract by 13 discussion with one or more prospective contractors. 14 Section 1-15.55. Person. "Person" means any business, 15 public or private corporation, partnership, individual, 16 union, committee, club, unincorporated association or other 17 organization or group of individuals, or other legal entity. 18 Section 1-15.60. Professional and artistic services. 19 "Professional and artistic services" means those services 20 provided under contract to a State agency by a person or 21 business, acting as an independent contractor, qualified by 22 education, experience, and technical ability to advise and 23 assist in solving specific management and programmatic 24 problems involving the organization, planning, direction, 25 control, and operation of State agencies. 26 Section 1-15.65. Purchase description. "Purchase 27 description" means the words used in a solicitation to 28 describe the supplies, services, professional or artistic 29 services, construction, or real property or capital -4- LRB9002279DNsb 1 improvements to be procured or leased and includes 2 specifications attached to or made a part of the 3 solicitation. 4 Section 1-15.70. Purchasing agency. "Purchasing agency" 5 means a State agency that is authorized by this Code, by its 6 implementing rules, or by authorized delegation of a State 7 purchasing officer to enter into contracts. 8 Section 1-15.75. Request for proposals. "Request for 9 proposals" means the process by which a purchasing agency 10 requests information from offerors, including all documents, 11 whether attached or incorporated by reference, used for 12 soliciting proposals. 13 Section 1-15.80. Responsible bidder or offeror. 14 "Responsible bidder or offeror" means a person who has the 15 capability in all respects to perform fully the contract 16 requirements and the integrity and reliability that will 17 assure good faith performance. 18 Section 1-15.85. Responsive bidder. "Responsive bidder" 19 means a person who has submitted a bid that conforms in all 20 material respects to the invitation for bids. 21 Section 1-15.90. Services. "Services" means the 22 furnishing of labor, time, or effort by a contractor, not 23 involving the delivery of a specific end product other than 24 reports or supplies that are incidental to the required 25 performance. 26 Section 1-15.95. Specifications. "Specifications" means 27 any description, provision, or requirement pertaining to the 28 physical or functional characteristics or of the nature of a -5- LRB9002279DNsb 1 supply, service, or other item to be procured under a 2 contract. Specifications may include a description of any 3 requirement for inspecting, testing, or preparing a supply, 4 service, professional or artistic service, construction, or 5 other item for delivery. 6 Section 1-15.100. State agency. "State agency" means 7 all officers, boards, commissions, and agencies created by 8 the Constitution, whether in the executive, legislative, or 9 judicial branch, but other than the circuit court; all 10 officers, departments, boards, commissions, agencies, 11 institutions, authorities, universities, bodies politic and 12 corporate of the State; and administrative units or corporate 13 outgrowths of the State government that are created by or in 14 accordance with statute, other than units of local government 15 and their officers, school districts, and boards of election 16 commissioners; and all administrative units and corporate 17 outgrowths of State agencies and as may be created by 18 executive order of the Governor. "State agency" does not 19 include the Illinois Comprehensive Health Insurance Board. 20 Section 1-15.105. State purchasing officer. "State 21 purchasing officer" means a person appointed as provided in 22 Article 10 to exercise the procurement authority created by 23 this Code. 24 Section 1-15.110. Supplies. "Supplies" means all 25 personal property, including but not limited to equipment, 26 materials, printing, and insurance, and the financing of 27 those supplies. 28 Section 1-15.112. Supported employee. "Supported 29 employee" means an individual who has a severe physical or 30 mental disability that seriously limits functional capacities -6- LRB9002279DNsb 1 including, but not limited to, mobility, communications, 2 self-care, self-direction, work tolerance, or work skills and 3 for whom competitive employment has not traditionally 4 occurred or for whom competitive employment has been 5 interrupted or intermittent as a result of a severe 6 disability and who, because of the nature and the severity of 7 that person's disability, needs intensive supported 8 employment services or extended services in order to perform 9 work. 10 Section 1-15.115. Using agency. "Using agency" means a 11 State agency that uses items procured under this Code. 12 ARTICLE 5 13 POLICY ORGANIZATION 14 Section 5-5. Procurement Policy Board. 15 (a) Creation. There is created a Procurement Policy 16 Board. 17 (b) Authority and duties. The Board shall have the 18 authority and responsibility to promulgate rules, consistent 19 with this Code, governing the procurement, management, 20 control, and disposal of supplies, services, professional or 21 artistic services, construction, and real property and 22 capital improvement leases procured by the State. All rules 23 shall be promulgated and published in accordance with the 24 Illinois Administrative Procedure Act. The Board shall 25 consider and decide matters of policy within the provisions 26 of this Code. The Board shall have the power to audit and 27 monitor the implementation of its rules and the requirements 28 of this Code but shall not exercise authority over the award 29 or administration of any particular contract or over any 30 dispute, claim, or litigation pertaining to a particular 31 contract. -7- LRB9002279DNsb 1 (c) Members. The Board shall consist of 5 members 2 appointed by the Governor and confirmed by the Senate. No 3 more than 3 members may be of the same political party. Each 4 member shall have demonstrated sufficient business or 5 professional experience in the area of procurement to perform 6 the functions of the Board. 7 (d) Terms. Of the initial appointees, the Governor 8 shall designate one member to serve a one-year term, 2 9 members to serve 2-year terms, and 2 members to serve 3-year 10 terms. Subsequent terms shall be 4 years. Members may be 11 reappointed for succeeding terms. 12 (e) Reimbursement. Members shall receive no 13 compensation but shall be reimbursed for any expenses 14 reasonably incurred in the performance of their duties. 15 Section 5-10. Chief Procurement Officer. 16 (a) Creation. There is created the Office of the Chief 17 Procurement Officer. 18 (b) Authority and duties. The Chief Procurement Officer 19 shall be responsible for overseeing implementation of the 20 Board's rules and policies and shall be appointed by a 21 majority vote of the Board. The Chief Procurement Officer 22 may be removed at the discretion of the Board. 23 (c) Compensation. The Chief Procurement Officer shall 24 be a full-time position compensated in an amount determined 25 by the Board. A member of the Board may not serve as Chief 26 Procurement Officer. 27 (d) Staff support. Subject to appropriation, the Chief 28 Procurement Officer may have up to 3 staff persons. 29 Section 5-15. Procurement Advisory Council. 30 (a) Creation. There is created the Procurement Advisory 31 Council. The Council shall consist of the Chief Procurement 32 Officer and the 16 State purchasing officers appointed as -8- LRB9002279DNsb 1 provided in Article 10. The Chief Procurement Officer shall 2 act as chair of the Council. 3 (b) Purposes. The Council shall: 4 (1) advise the Board on procurement policies; 5 (2) coordinate purchases of the same item by more 6 than one purchasing agency to obtain volume discounts; 7 (3) recommend specific State purchasing officers or 8 State agencies as responsible for certain categories of 9 purchases; and 10 (4) assist State purchasing officers and State 11 agencies in planning, purchasing, installing, and using 12 certain technology, including telecommunications systems. 13 Section 5-20. Joint Purchasing Program Advisory Council. 14 There is created a Joint Purchasing Program Advisory Council. 15 Members of the Joint Purchasing Program Advisory Council 16 shall be appointed by the Board and shall consist of 17 representatives of local governmental units and 18 representatives of the Procurement Advisory Council. The 19 Joint Purchasing Program Advisory Council shall advise and 20 consult with the Board on the scope and nature of joint 21 governmental purchasing. 22 Section 5-25. Rulemaking authority. A State agency 23 authorized to make procurements under this Code shall have 24 the authority to promulgate rules to carry out that 25 authority. All rules shall be promulgated in accordance with 26 the Illinois Administrative Procedure Act and shall be 27 subject to the approval of the Board. 28 ARTICLE 10 29 PROCUREMENT ORGANIZATION 30 Section 10-5. Exercise of procurement authority. The -9- LRB9002279DNsb 1 State purchasing officers appointed by their respective State 2 officers or State agencies shall exercise the procurement 3 authority created by this Code except as otherwise provided 4 in this Code. 5 Section 10-10. Appointment of State purchasing officers. 6 (a) General appointments. The following State officers 7 shall each appoint a State purchasing officer to exercise 8 within his or her jurisdiction the procurement authority 9 created by this Code: 10 (1) Director of Central Management Services. 11 (2) Attorney General. 12 (3) Comptroller. 13 (4) Secretary of State. 14 (5) Treasurer. 15 (6) Auditor General. 16 (7) Supreme Court. 17 (8) Speaker of the House of Representatives. 18 (9) President of the Senate. 19 (10) Minority leader of the House of 20 Representatives. 21 (11) Minority leader of the Senate. 22 (12) Chair of the Joint Committee on Legislative 23 Support Services. 24 (13) Board of Trustees of the University of 25 Illinois. 26 (14) Board of Trustees of Southern Illinois 27 University. 28 (15) Board of Governors of State Colleges and 29 Universities. 30 (16) Board of Regents of Regency Universities. 31 No new personnel position may be created to fill the 32 position of State purchasing officer. 33 (b) Legislative support services agencies. The State -10- LRB9002279DNsb 1 purchasing officer appointed under subsection (a) by the 2 chair of the Joint Committee on Legislative Support Services 3 shall serve as the State purchasing officer for the 4 legislative support services agencies during the term of the 5 chair. 6 (c) Central Management Services. The State purchasing 7 officer appointed under subsection (a) by the Director of 8 Central Management Services shall serve as the State 9 purchasing officer for all State agencies under the 10 jurisdiction of the Governor or Lieutenant Governor and all 11 State agencies outside the jurisdiction of any other State 12 purchasing officer. 13 Section 10-15. Delegation of authority. A State 14 purchasing officer may delegate procurement powers and duties 15 to any State agency under that officer's jurisdiction as 16 authorized by the Board. 17 ARTICLE 15 18 PROCUREMENT BULLETIN 19 Section 15-5. Publisher. The Board shall designate a 20 State agency responsible for publishing the Illinois 21 Procurement Bulletin. 22 Section 15-10. Contents. The Illinois Procurement 23 Bulletin shall contain notices and other information required 24 by this Code or by rules promulgated under this Code to be 25 published in the Illinois Procurement Bulletin. The rules of 26 the Board promulgated under this Section shall require 27 inclusion in the Bulletin sufficient information to 28 adequately inform the public of the nature of each contract. 29 Each issue shall include a comprehensive index of its 30 contents. A purchasing agency may also choose, as applicable -11- LRB9002279DNsb 1 and in accordance with rules of the Board, to place notices 2 in the official State newspaper or a newspaper circulating in 3 a locality relevant to the specified procurement. 4 Section 15-15. Publication. The Illinois Procurement 5 Bulletin shall be published at least once monthly. It shall 6 be available through subscription for a minimal fee not 7 exceeding publication and distribution costs. The Illinois 8 Procurement Bulletin shall be distributed free to public 9 libraries within Illinois. 10 Section 15-20. Qualified bidders. Subscription to the 11 Illinois Procurement Bulletin shall not be required to 12 qualify as a bidder or offeror under this Code. 13 ARTICLE 20 14 SOURCE SELECTION AND CONTRACT FORMATION 15 Section 20-5. Method of source selection. Unless 16 otherwise authorized by law, all State contracts shall be 17 awarded by competitive sealed bidding, in accordance with 18 Section 20-10, except as provided in Sections 20-15, 20-20, 19 20-25, 20-30, 20-35, 30-15, and 40-20. 20 Section 20-10. Competitive sealed bidding. 21 (a) Conditions for use. All contracts shall be awarded 22 by competitive sealed bidding except as otherwise provided in 23 Section 20-5. 24 (b) Invitation for bids. An invitation for bids shall 25 be issued and shall include a purchase description and the 26 material contractual terms and conditions applicable to the 27 procurement. 28 (c) Public notice. Public notice of the invitation for 29 bids shall be published in the Illinois Procurement Bulletin -12- LRB9002279DNsb 1 at least 28 days before the date set in the invitation for 2 the opening of bids. 3 (d) Bid opening. Bids shall be opened publicly in the 4 presence of one or more witnesses at the time and place 5 designated in the invitation for bids. The name of each 6 bidder, the amount of each bid, and other relevant 7 information as may be specified by rule of the Board shall be 8 recorded. After the award of the contract, each bid and the 9 record of each bid shall be open to public inspection. 10 (e) Bid acceptance and bid evaluation. Bids shall be 11 unconditionally accepted without alteration or correction, 12 except as authorized in this Code. Bids shall be evaluated 13 based on the requirements set forth in the invitation for 14 bids, which may include criteria to determine acceptability 15 such as inspection, testing, quality, workmanship, delivery, 16 and suitability for a particular purpose. Those criteria 17 that will affect the bid price and be considered in 18 evaluation for award, such as discounts, transportation 19 costs, and total or life cycle costs, shall be objectively 20 measurable. The invitation for bids shall set forth the 21 evaluation criteria to be used. Only criteria set forth in 22 the invitation for bids may be used in the bid evaluation. 23 (f) Correction or withdrawal of bids. Correction or 24 withdrawal of inadvertently erroneous bids before or after 25 award, or cancellation of awards of contracts based on bid 26 mistakes, shall be permitted in accordance with rules of the 27 Board. After bid opening, no changes in bid prices or other 28 provisions of bids prejudicial to the interest of the State 29 or fair competition shall be permitted. All decisions to 30 permit the correction or withdrawal of bids based on bid 31 mistakes shall be supported by written determination made by 32 a purchasing agency. 33 (g) Award. The contract shall be awarded with 34 reasonable promptness by written notice to the lowest -13- LRB9002279DNsb 1 responsible and responsive bidder whose bid meets the 2 requirements and criteria set forth in the invitation for 3 bids. 4 (h) Multi-step sealed bidding. When it is considered 5 impracticable to initially prepare a purchase description to 6 support an award based on price, an invitation for bids may 7 be issued requesting the submission of unpriced offers to be 8 followed by an invitation for bids limited to those bidders 9 whose offers have been qualified under the criteria set forth 10 in the first solicitation. 11 Section 20-15. Competitive sealed proposals. 12 (a) Conditions for use. When, under this Code or under 13 rules promulgated by the Board, the purchasing agency 14 determines in writing that the use of competitive sealed 15 bidding is either not practicable or not advantageous to the 16 State, a contract may be entered into by competitive sealed 17 proposals. The Board may provide by rule that it is either 18 not practicable or not advantageous to the State to procure 19 specified types of supplies, services, or construction by 20 competitive sealed bidding. 21 (b) Request for proposals. Proposals shall be solicited 22 through a request for proposals. 23 (c) Public notice. Public notice of the request for 24 proposals shall be published in the Illinois Procurement 25 Bulletin at least 28 days before the date set in the 26 invitation for the opening of proposals. 27 (d) Receipt of proposals. Proposals shall be opened 28 publicly in the presence of one or more witnesses at the time 29 and place designated in the request for proposals, but 30 proposals shall be opened in a manner to avoid disclosure of 31 contents to competing offerors during the process of 32 negotiation. A register of proposals shall be prepared and 33 shall be open for public inspection after contract award. -14- LRB9002279DNsb 1 (e) Evaluation factors. The requests for proposals 2 shall state the relative importance of price and other 3 evaluation factors. Proposals shall be submitted in 2 parts: 4 the first, covering items except price; and the second, 5 covering price. The first part of all proposals shall be 6 evaluated and ranked prior to the opening of the second part 7 of all proposals. 8 (f) Discussion with responsible offerors and revisions 9 of proposals. As provided in the request for proposals and 10 under rules of the Board, discussions may be conducted with 11 responsible offerors who submit proposals determined to be 12 reasonably susceptible of being selected for award for the 13 purpose of clarifying and assuring full understanding of and 14 responsiveness to the solicitation requirements. Those 15 offerors shall be accorded fair and equal treatment with 16 respect to any opportunity for discussion and revision of 17 proposals. Revisions may be permitted after submission and 18 before award for the purpose of obtaining best and final 19 offers. In conducting discussions there shall be no 20 disclosure of any information derived from proposals 21 submitted by competing offerors. 22 (g) Award. Awards shall be made to the responsible 23 offeror whose proposal is determined in writing to be the 24 most advantageous to the State, taking into consideration 25 price and the evaluation factors set forth in the request for 26 proposals. No other factors or criteria shall be used in the 27 evaluation. The contract file shall contain the basis on 28 which the award is made. 29 Section 20-20. Small purchases. 30 (a) Amount. Any individual procurement of supplies or 31 services other than professional or artistic services, not 32 exceeding $10,000 and any procurement of construction not 33 exceeding $25,000 may be made without competitive sealed -15- LRB9002279DNsb 1 bidding. Procurements shall not be artificially divided so 2 as to constitute a small purchase under this Section. 3 (b) Adjustment. Each July 1, the small purchase maximum 4 established in subsection (a) shall be adjusted for inflation 5 as determined by the Consumer Price Index for All Urban 6 Consumers as determined by the United States Department of 7 Labor and rounded to the nearest $100. 8 Section 20-25. Sole source procurements. In accordance 9 with standards set by the Board, contracts may be awarded 10 without use of the specified method of source selection when 11 there is only one economically feasible source for the item. 12 At least 2 weeks before entering into a sole source contract, 13 the purchasing agency shall publish in the Illinois 14 Procurement Bulletin a notice of intent to do so along with a 15 description of the item to be procured and the intended sole 16 source contractor. 17 Section 20-30. Emergency purchases. 18 (a) Conditions for use. In accordance with standards 19 set by the Board, a purchasing agency may make emergency 20 procurements without competitive sealed bidding or prior 21 notice when there exists a threat to public health or public 22 safety, or when immediate expenditure is necessary for 23 repairs to State property in order to protect against further 24 loss of or damage to State property, to prevent or minimize 25 serious disruption in State services, or to ensure the 26 integrity of State records. Emergency procurements shall be 27 made with as much competition as is practicable under the 28 circumstances and as required by the rule of the Board. A 29 written description of the basis for the emergency and 30 reasons for the selection of the particular contractor shall 31 be included in the contract file. 32 (b) Notice. Before the 10th of each month, the -16- LRB9002279DNsb 1 purchasing agency shall publish in the Illinois Procurement 2 Bulletin a copy of each written description and reasons and 3 the total cost of each emergency procurement made during the 4 previous month. When only an estimate of the total cost is 5 known at the time of publication, the estimate shall be 6 identified as an estimate and published. When the actual 7 total cost is determined, it shall also be published in like 8 manner before the 10th day of the next succeeding month. 9 (c) Affidavits. A purchasing agency making a 10 procurement under this Section shall file affidavits with 11 the Board and the Auditor General within 10 days after the 12 procurement setting forth the amount expended, the name of 13 the contractor involved, and the conditions and circumstances 14 requiring the emergency procurement. When only an estimate 15 of the cost is available within 10 days after the 16 procurement, the actual cost shall be reported immediately 17 after it is determined. At the end of each fiscal quarter, 18 the Auditor General shall file with the Legislative Audit 19 Commission and the Governor a complete listing of all 20 emergency procurements reported during that fiscal quarter. 21 The Legislative Audit Commission shall review the emergency 22 procurements so reported and, in its annual reports, advise 23 the General Assembly of procurements that appear to 24 constitute an abuse of this Section. 25 (d) Quick purchases. The Board may promulgate policies 26 extending the circumstances by which a purchasing agency may 27 make purchases under this Section, including but not limited 28 to the procurement of items available at a discount for a 29 limited period of time. 30 Section 20-35. Competitive selection procedures. 31 (a) Conditions for use. The services specified in 32 Article 35 shall be procured in accordance with this Section, 33 except as authorized under Sections 20-25 and 20-30 of this -17- LRB9002279DNsb 1 Article or as authorized by the Board in accordance with the 2 provisions of this Code. 3 (b) Statement of qualifications. Potential contractors 4 may submit statements of qualifications and expressions of 5 interest. The Board may specify a uniform format for 6 statements of qualifications. Persons may amend these 7 statements at any time by filing a new statement. 8 (c) Public announcement and form of request for 9 proposals. Public notice of the need for the procurement 10 shall be given in the form of a request for proposals and 11 published in the Illinois Procurement Bulletin at least 28 12 days before the date set in the request for proposals for the 13 opening of proposals. The request for proposals shall 14 describe the professional or artistic services required, list 15 the type of information and data required of each offeror, 16 and state the relative importance of particular 17 qualifications. 18 (d) Discussions. The purchasing agency may conduct 19 discussions with any offeror who has submitted a proposal to 20 determine the offeror's qualifications for further 21 consideration. Discussions shall not disclose any 22 information derived from proposals submitted by other 23 offerors. 24 (e) Award. Award shall be made to the offeror 25 determined in writing by the purchasing agency to be best 26 qualified based on the evaluation factors set forth in the 27 request for proposals and negotiation of compensation 28 determined to be fair and reasonable. If compensation cannot 29 be agreed upon with the best qualified offeror, then 30 negotiations shall be formally terminated with the selected 31 offeror. If proposals were submitted by one or more other 32 offerors determined to be qualified, negotiations may be 33 conducted with the other offeror or offerors, in the order of 34 their respective qualification ranking. The contract may be -18- LRB9002279DNsb 1 awarded to the offeror then ranked as best qualified if the 2 amount of compensation is determined to be fair and 3 reasonable. 4 Section 20-40. Cancellation of invitations for bids or 5 requests for proposals. An invitation for bids, a request 6 for proposals, or any other solicitation may be cancelled, or 7 any and all bids or proposals may be rejected in whole or in 8 part as may be specified in the solicitation, when it is in 9 the best interests of the State in accordance with rules 10 promulgated by the Board. The reasons for cancellation or 11 rejection shall be made part of the contract file. 12 Section 20-45. Prequalification of suppliers. The Board 13 shall promulgate rules for the development of prequalified 14 supplier lists for appropriate categories of purchases and 15 the periodic updating of those lists. 16 Section 20-50. Specifications. Specifications shall be 17 prepared in accordance with standards promulgated by the 18 Board. Those standards shall include a prohibition against 19 the use of brand-name products except under specified 20 circumstances and a restriction on the use of specifications 21 drafted by a potential bidder. All specifications shall seek 22 to promote overall economy for the purposes intended and 23 encourage competition in satisfying the State's needs and 24 shall not be unduly restrictive. 25 Section 20-55. Types of contracts. Subject to the 26 limitations of this Section and unless otherwise authorized 27 by law, any type of contract that will promote the best 28 interests of the State may be used, except that 29 cost-plus-a-percentage-of-cost contracts are prohibited. A 30 cost-reimbursement contract may be used only when a -19- LRB9002279DNsb 1 determination is made in writing that a cost-reimbursement 2 contract is likely to be less costly to the State than any 3 other type or that it is impracticable to obtain the item 4 required except under that type of contract. The general 5 form of contracts shall be specified by the Comptroller. 6 Section 20-60. Duration of contracts. 7 (a) Maximum duration. A contract may be entered into 8 for any period of time deemed by the Board to be in the best 9 interests of the State but not exceeding 10 years. The 10 length of a lease for real property or capital improvements 11 may be in accordance with the provisions of Section 40-25. 12 (b) Subject to appropriation. All contracts made or 13 entered into shall recite that they are subject to 14 termination and cancellation in any year for which the 15 General Assembly fails to make an appropriation to make 16 payments under the terms of the contract. 17 Section 20-65. Right to audit records. 18 (a) Maintenance of books and records. Every contract 19 and subcontract shall require the contractor or 20 subcontractor, as applicable, to maintain books and records 21 relating to the performance of the contract or subcontract 22 and necessary to support amounts charged to the State under 23 the contract or subcontract. The books and records shall be 24 maintained by the contractor for a period of 3 years from the 25 later of the date of final payment under the contract or 26 completion of the contract and by the subcontractor for a 27 period of 3 years from the later of the date of final payment 28 under the subcontract or completion of the subcontract. 29 However, the 3-year period shall be extended for the duration 30 of any audit in progress at the time of that period's 31 expiration. 32 (b) Audit. Every contract and subcontract shall provide -20- LRB9002279DNsb 1 that all books and records required to be maintained under 2 subsection (a) shall be available for review and audit by the 3 Auditor General and the purchasing agency. Every contract 4 and subcontract shall require the contractor and 5 subcontractor, as applicable, to cooperate fully with any 6 audit. 7 (c) Failure to maintain books and records. Failure to 8 maintain the books and records required by this Section shall 9 establish a presumption in favor of the State for the 10 recovery of any funds paid by the State for which required 11 books and records are not available. 12 Section 20-70. Finality of determinations. 13 Determinations made by a purchasing agency under this Code 14 are final and conclusive unless they are clearly erroneous, 15 arbitrary, capricious, or contrary to law. 16 Section 20-75. Disputes and protests. The Board shall 17 by rule establish procedures to be followed by purchasing 18 agencies in resolving protested solicitations and awards and 19 contract controversies, for debarment or suspension of 20 contractors, and for resolving other procurement-related 21 disputes. 22 Section 20-80. Contract files. 23 (a) Written determinations. All written determinations 24 required under this Article shall be placed in the contract 25 file maintained by the purchasing agency. 26 (b) Filing with Comptroller. Whenever a contract 27 liability, except for: 28 (1) contracts paid from personal services, or 29 (2) contracts between the State and its employees 30 to defer compensation in accordance with Article 24 of 31 the Illinois Pension Code -21- LRB9002279DNsb 1 exceeding $5,000 is incurred by any State agency, a copy of 2 the contract, purchase order, or lease shall be filed with 3 the Comptroller within 15 days thereafter. Any cancellation 4 or modification to any such contract liability shall be filed 5 with the Comptroller within 15 days of its execution. 6 (c) Late filing affidavit. When a contract, purchase 7 order, or lease required to be filed by this Section has not 8 been filed within 30 days of execution, the Comptroller shall 9 refuse to issue a warrant for payment thereunder until the 10 agency files with the Comptroller the contract, purchase 11 order, or lease and an affidavit, signed by the chief 12 executive officer of the agency or his or her designee, 13 setting forth an explanation of why the contract liability 14 was not filed within 30 days of execution. A copy of this 15 affidavit shall be filed with the Auditor General. 16 (d) Professional and artistic services contracts. No 17 voucher shall be submitted to the Comptroller for a warrant 18 to be drawn for the payment of money from the State treasury 19 or from other funds held by the State Treasurer on account of 20 any contract for services involving professional or artistic 21 skills involving an expenditure of more than $5,000 for the 22 same type of service at the same location during any fiscal 23 year unless the contract is reduced to writing before the 24 services are performed and filed with the Comptroller. When 25 a contract for professional or artistic skills in excess of 26 $5,000 was not reduced to writing before the services were 27 performed, the Comptroller shall refuse to issue a warrant 28 for payment for the services until the State agency files 29 with the Comptroller: 30 (1) a written contract covering the services, and 31 (2) an affidavit, signed by the chief executive 32 officer of the State agency or his or her designee, 33 stating that the services for which payment is being made 34 were agreed to before commencement of the services and -22- LRB9002279DNsb 1 setting forth an explanation of why the contract was not 2 reduced to writing before the services commenced. 3 A copy of this affidavit shall be filed with the Auditor 4 General. The Comptroller shall maintain professional or 5 artistic service contracts filed under this Section 6 separately from other filed contracts. 7 (e) Method of source selection. When a contract is 8 filed with the Comptroller under this Section, the 9 Comptroller's file shall identify the method of source 10 selection used in obtaining the contract. 11 ARTICLE 25 12 SUPPLIES AND SERVICES (EXCLUDING 13 PROFESSIONAL OR ARTISTIC) 14 Section 25-5. Applicability. All contracts for supplies 15 and services shall be procured in accordance with the 16 provisions of this Article. 17 Section 25-10. Authority. State purchasing officers 18 shall have the authority to procure supplies and services, 19 except as that authority may be limited by the Board or 20 delegated by the State purchasing officer in accordance with 21 Section 10-15. 22 Section 25-15. Method of source selection. 23 (a) Competitive sealed bidding. Except as provided in 24 subsection (b) and Sections 20-20, 20-25, and 20-30, all 25 State contracts for supplies and services shall be awarded by 26 competitive sealed bidding in accordance with Section 20-10. 27 (b) Other methods. The Board shall establish by rule 28 categories of purchases that may be made without competitive 29 sealed bidding and the most competitive alternate method of 30 source selection that shall be used for each category of -23- LRB9002279DNsb 1 purchase. 2 Section 25-20. Prevailing wage requirements. 3 (a) Applicability. All services furnished under 4 printing contracts and under service contracts exceeding 5 $2,000 or $200 per month shall be performed by employees of 6 the contractor receiving the prevailing wage rate and working 7 under conditions prevalent in the locality in which the work 8 is produced. A contract bidder or offeror, in order to be 9 considered a responsible bidder or offeror for the purposes 10 of this Code, shall certify to the State purchasing officer 11 that wages paid to its employees are no less, and fringe 12 benefits and working conditions of employees are not less 13 favorable, than those prevailing in the locality where the 14 contract is to be performed. Prevailing wages and working 15 conditions shall be determined by the Director of Labor. 16 Whenever a collective bargaining agreement is in effect 17 between an employer, other than a State agency, and service 18 or printing employees as defined in this Section who are 19 represented by a responsible organization that is in no way 20 influenced or controlled by the management, that agreement 21 and its provisions shall be considered as conditions 22 prevalent in that locality and shall be the minimum 23 requirements taken into consideration by the Director of 24 Labor. Collective bargaining agreements between State 25 employees and the State of Illinois shall not be taken into 26 account by the Department of Labor in determining the 27 prevailing wage rate. 28 (b) Services and printing defined. As used in this 29 Section, "services" means janitorial cleaning services, 30 window cleaning services, food services, and security 31 services. "Printing" means all processes and operations 32 involved in printing and any type of photographic 33 reproduction or other duplicating process, including but not -24- LRB9002279DNsb 1 limited to letterpress, offset, and gravure processes, the 2 multilith method, any type of photographic or other 3 duplicating process, and the operations of composition, 4 platemaking, presswork, and binding; and the end products of 5 those processes, methods, and operations. As used in this 6 Section "printing" does not include photocopiers used in the 7 course of normal business activities, photographic equipment 8 used for geographic mapping, printed matter used in the 9 normal day to day operations of the General Assembly, the 10 printing of State Lottery tickets, shares, or other State 11 Lottery game related materials, or preprinted or printed 12 matter that is commonly available to the general public from 13 contractor inventory. 14 (c) Inapplicability. This Section does not apply to 15 services furnished under contracts for professional or 16 artistic services. This Section does not apply to vocational 17 programs of training for persons with physical or mental 18 disabilities. 19 Section 25-25. Printing cost offsets. The Board may 20 promulgate rules permitting the exchange of advertising 21 rights in or receipt of free copies of printed products 22 procured under this Article as a means of reducing printing 23 costs. The Board's rules shall specify the appropriate 24 method of source selection to be used to competitively 25 acquire printing cost offsets. 26 Section 25-30. More favorable terms. A supply or 27 service contract may include, if determined by a State 28 purchasing officer to be in the best interests of the State, 29 a clause requiring that if more favorable terms are granted 30 by the contractor to any similar state or local governmental 31 agency in any state in a contemporaneous agreement let under 32 the same or similar financial terms and circumstances for -25- LRB9002279DNsb 1 comparable supplies or services, the more favorable terms 2 shall be applicable under the contract. 3 Section 25-35. Purchase of coal and postage stamps. 4 (a) Delivery of necessary supplies. To avoid 5 interruption or impediment of delivery of necessary supplies, 6 commodities, and coal, State purchasing officers may make 7 purchases of or contracts for supplies and commodities after 8 April 30 of a fiscal year when delivery of the supplies and 9 commodities is to be made after June 30 of that fiscal year 10 and payment for which is to be made from appropriations for 11 the next fiscal year. 12 (b) Postage. All postage stamps purchased from State 13 funds must be perforated for identification purposes. A 14 General Assembly member may furnish the U.S. Post Office with 15 a warrant so as to allow for the creation or continuation of 16 a bulk rate mailing fund in the name of the General Assembly 17 member or may furnish a postage meter company or post office 18 with a warrant so as to facilitate the purchase of a postage 19 meter and its stamps. Any postage meter so purchased must 20 also contain a stamp that shall state "Official State Mail". 21 Section 25-40. Freight increases. If the Illinois 22 Department of Transportation provides by contract or 23 regulation that general increases in freight rates incurred 24 by a contractor after entering into the contract may be added 25 to the contract price or passed through to the Department, 26 then this remedy shall be available to the contractor whether 27 the increased general freight rates are for railroads, barge 28 lines, or motor carriers of property. 29 Section 25-45. Energy conservation program. State 30 purchasing officers may enter into energy conservation 31 program contracts that provide for utility cost savings. The -26- LRB9002279DNsb 1 Board shall promulgate and adopt rules for the implementation 2 of this Section. 3 Section 25-50. Human services. Every purchasing agency 4 that contracts or provides grants for human services may, 5 upon request of the service provider, review the contract or 6 grant, upon notification by the provider that the cost of the 7 provider's property and casualty insurance has increased by 8 25% or more. The purchasing agency may adjust the existing 9 contract or grant with the service provider in accordance 10 with any agreement reached and subject to the limitations of 11 that agency's appropriated funds. For purposes of this 12 Section the revised contract amount shall not exceed the 13 percentage calculated by dividing the total contract or grant 14 amount by the provider's total budget as agreed to by the 15 purchasing agency. 16 Section 25-55. Annual reports. Every printed annual 17 report produced by a State agency shall bear a statement 18 indicating whether it was printed by the State of Illinois or 19 by contract and indicating the printing cost per copy and the 20 number of copies printed. The Department of Central 21 Management Services shall prepare and submit to the General 22 Assembly on the fourth Wednesday of January in each year a 23 report setting forth with respect to each State agency for 24 the calendar year immediately preceding the calendar year in 25 which the report is filed the total quantity of annual 26 reports printed, the total cost, and the cost per copy and 27 the cost per page of the annual report of the State agency 28 printed during the calendar year covered by the report. 29 Section 25-60. General Assembly printing; session laws. 30 (a) Authority. Public printing for the use of either 31 House of the General Assembly shall be subject to its -27- LRB9002279DNsb 1 control. Any printing or operation of printing that the 2 Legislative Printing Unit is unable to perform may be 3 purchased in accordance with this Article. 4 (b) Time of delivery. Daily calendars, journals, and 5 other similar printing for which manuscript or copy is 6 delivered to the Legislative Printing Unit by the clerical 7 officer of either House shall be printed so as to permit 8 delivery at any reasonable time required by the clerical 9 officer. Any petition, bill, resolution, joint resolution, 10 memorial, and similar manuscript or copy delivered to the 11 Legislative Printing Unit by the clerical officer of either 12 House shall be printed at any reasonable time required by 13 that officer. 14 (c) Style. The manner, form, style, size, and 15 arrangement of type used in printing the bills, resolutions, 16 amendments, conference reports, and journals, including daily 17 journals, of the General Assembly shall be as provided in the 18 Rules of the General Assembly. 19 (d) Daily journal. The Clerk of the House of 20 Representatives and the Secretary of the Senate shall each 21 prepare and deliver to the Legislative Printing Unit, 22 immediately after the close of each daily session, a 23 printer's copy of the daily journal for their respective 24 House. 25 (e) Daily and bound journals. 26 (1) Subscriptions. The Legislative Printing Unit 27 shall have printed the number of copies of the daily 28 journal as may be requested by the clerical officer of 29 each House. The Secretary of the Senate and the Clerk of 30 the House of Representatives shall furnish a copy of each 31 daily journal of their respective House to those persons 32 who apply therefor upon payment of a reasonable 33 subscription fee established separately by the Secretary 34 of the Senate and the Clerk of the House for their -28- LRB9002279DNsb 1 respective House. Each subscriber shall specify at the 2 time he or she subscribes the address where he or she 3 wishes the journals mailed. The daily journals shall be 4 furnished free of charge on a pickup basis to State 5 offices and to the public as long as the supply lasts. 6 The Secretary of the Senate and the Clerk of the House 7 shall determine the number of journals available for 8 pickup at their respective offices. 9 (2) Other copies. After the General Assembly 10 adjourns, the Clerk of the House and the Secretary of the 11 Senate shall prepare and deliver to the Legislative 12 Printing Unit a printer's copy of matter for the regular 13 House and Senate journals, together with any matter, not 14 previously printed in the daily journals, that is 15 required by law, by order of either House, or by joint 16 resolution to be printed in the journals. The 17 Legislative Printing Unit shall have printed the number 18 of copies of the bound journal as may be requested by the 19 clerical officer of each House. A reasonable number of 20 bound volumes of the journal of each House of the General 21 Assembly shall be provided to State and local officers, 22 boards, commissions, institutions, departments, agencies, 23 and libraries requesting them through canvasses conducted 24 separately by the Secretary of the Senate and the Clerk 25 of the House. Reasonable fees established separately by 26 the Secretary of the Senate and the Clerk of the House 27 may be charged for bound volumes of the journal of each 28 House of the General Assembly. 29 (f) Session laws. Immediately after the General Assembly 30 adjourns, the Secretary of State shall prepare a printer's 31 copy for the "Session Laws of Illinois" that shall set forth 32 in full all Acts and joint resolutions passed by the General 33 Assembly at the session just concluded and all executive 34 orders of the Governor taking effect under Article V, Section -29- LRB9002279DNsb 1 11 of the Constitution and the Executive Reorganization 2 Implementation Act. The printer's copy shall be furnished 3 and delivered to the Secretary of State by the Enrolling and 4 Engrossing Department of the 2 Houses. At the time an 5 enrolled law is filed with the Secretary of State, whether 6 before or after the conclusion of the session in which it was 7 passed, it shall be assigned a Public Act number, the first 8 part of which shall be the number of the General Assembly 9 followed by a dash and then a number showing the order in 10 which that law was filed with the Secretary of State. The 11 title page of each volume of the session laws shall contain 12 the following: "Printed by the authority of the General 13 Assembly of the State of Illinois". The laws shall be 14 arranged by the Secretary of State and printed in the 15 chronological order of Public Act numbers. At the end of 16 each Act the dates when the Act was passed by the General 17 Assembly and when the Act was approved by the Governor shall 18 be stated. Any Act becoming law without the approval of the 19 Governor shall be marked at its end in the session laws by 20 the printed certificate of the Secretary of State. Executive 21 orders taking effect under Article V, Section 11 of the 22 Constitution and the Executive Reorganization Implementation 23 Act shall be printed in chronological order of executive 24 order number and shall state at the end of each executive 25 order the date it was transmitted to the General Assembly and 26 the date it takes effect. In the case of an amendatory Act, 27 the changes made by the amendatory Act shall be indicated in 28 the session laws in the following manner: (i) all new matter 29 shall be printed in italics; and (ii) all matter deleted by 30 the amendatory Act shall be shown crossed with a line. The 31 Secretary of State shall prepare and furnish a table of 32 contents and an index to each volume of the session laws. 33 (g) Distribution. The bound volumes of the session laws 34 of the General Assembly shall be made available to the -30- LRB9002279DNsb 1 following: 2 (1) one copy of each to each State officer, board, 3 commission, institution, and department requesting a copy 4 in accordance with a canvass conducted by the Secretary 5 of State before the printing of the session laws except 6 judges of the appellate courts and judges and associate 7 judges of the circuit courts; 8 (2) 10 copies to the law library of the Supreme 9 Court; one copy each to the law libraries of the 10 appellate courts; and one copy to each of the county law 11 libraries or, in those counties without county law 12 libraries, one copy to the clerk of the circuit court; 13 (3) one copy of each to each county clerk; 14 (4) 10 copies of each to the library of the 15 University of Illinois; 16 (5) 3 copies of each to the libraries of the 17 University of Illinois at Chicago, Southern Illinois 18 University at Carbondale, Southern Illinois University at 19 Edwardsville, Northern Illinois University, Western 20 Illinois University, Eastern Illinois University, 21 Illinois State University, Chicago State University, 22 Northeastern Illinois University, Chicago Kent College of 23 Law, DePaul University, John Marshall Law School, Loyola 24 University, Northwestern University, Roosevelt 25 University, and the University of Chicago; 26 (6) a number of copies sufficient for exchange 27 purposes to the Legislative Reference Bureau and the 28 University of Illinois College of Law Library; 29 (7) a number of copies sufficient for public 30 libraries in the State to the State Library; and 31 (8) the remainder shall be retained for 32 distribution as the interests of the State may require to 33 persons making application in writing or in person for 34 the publication. -31- LRB9002279DNsb 1 (h) Messages and reports. The following shall be 2 printed in a quantity not to exceed the maximum stated in 3 this subsection and bound and distributed at public expense: 4 (1) messages to the General Assembly by the 5 Governor, 10,000 copies; 6 (2) the biennial report of the Lieutenant Governor, 7 1,000 copies; 8 (3) the biennial report of the Secretary of State, 9 3,000 copies; 10 (4) the biennial report of the State Comptroller, 11 5,000 copies; 12 (5) the biennial report of the State Treasurer, 13 3,000 copies; 14 (6) the annual report of the State Board of 15 Education, 6,000 copies; and 16 (7) the biennial report and annual opinions of the 17 Attorney General, 5,000 copies. 18 The reports of all other State officers, boards, 19 commissions, institutions, and departments shall be printed, 20 bound, and distributed at public expense in a number of 21 copies determined from previous experience not to exceed the 22 probable and reasonable demands of the State therefor. Any 23 other report required by law to be made to the Governor 24 shall, upon his or her order, be printed in the quantity 25 ordered by the Governor, bound and distributed at public 26 expense. 27 (i) Prohibition. All books, pamphlets, documents, and 28 reports published through or by the State of Illinois or any 29 State agency, board, or commission shall have printed thereon 30 "Printed by authority of the State of Illinois", the date of 31 each publication, the number of copies printed, and the 32 printing order number. Each using agency shall be 33 responsible for ascertaining the compliance of printing 34 materials procured by or for it with this subsection. No -32- LRB9002279DNsb 1 printing or reproduction contract shall be let and no 2 printing or reproduction shall be accomplished when that 3 wording does not appear on the material to be printed or 4 reproduced. No publication may have written, stamped, or 5 printed on it, or attached to it, "Compliments of ........ 6 (naming a person)" or any words of similar import. 7 ARTICLE 30 8 CONSTRUCTION AND CONSTRUCTION- 9 RELATED PROFESSIONAL SERVICES 10 Section 30-5. Applicability. Construction and 11 construction-related professional services shall be procured 12 in accordance with this Article. 13 Section 30-10. Authority. Construction agencies shall 14 have the authority to procure construction and 15 construction-related professional services. 16 Section 30-15. Method of source selection. 17 (a) Competitive sealed bidding. Except as provided in 18 subsections (b), (c), and (d) and Sections 20-20, 20-25, and 19 20-30, all State construction contracts shall be awarded by 20 competitive sealed bidding in accordance with Section 20-10. 21 (b) Other methods. The Board shall establish by rule 22 construction purchases that may be made without competitive 23 sealed bidding and the most competitive alternate method of 24 source selection that shall be used. 25 (c) Construction-related professional services. All 26 construction-related professional services contracts shall be 27 awarded in accordance with the provisions of the 28 Architectural, Engineering, and Land Surveying Qualifications 29 Based Selection Act. "Professional services" means those 30 services within the scope of the practice of architecture, -33- LRB9002279DNsb 1 professional engineering, structural engineering, or 2 registered land surveying, as defined by the laws of this 3 State. 4 (d) Correctional facilities. Remodeling and 5 rehabilitation projects at correctional facilities under 6 $25,000 funded from the General Revenue Fund are exempt from 7 the provisions of this Article. The Department of 8 Corrections may use inmate labor for the remodeling or 9 rehabilitation of correctional facilities on those projects 10 under $25,000 funded from the General Revenue Fund. 11 Section 30-20. Prequalification. The Board shall 12 promulgate rules for the development of prequalified supplier 13 lists for construction and construction-related professional 14 services and the periodic updating of those lists. 15 Construction and construction-related professional services 16 contracts over $25,000 may be awarded to any qualified 17 suppliers. 18 Section 30-25. Retention of a percentage of contract 19 price. Whenever any contract entered into by a construction 20 agency for the repair, remodeling, renovation, or 21 construction of a building or structure, for the construction 22 or maintenance of a highway, as those terms are defined in 23 Article 2 of the Illinois Highway Code, or for the 24 reclamation of abandoned lands as those terms are defined in 25 Article I of the Abandoned Mined Lands and Water Reclamation 26 Act provides for the retention of a percentage of the 27 contract price until final completion and acceptance of the 28 work, upon the request of the contractor and with the 29 approval of the construction agency the amount so retained 30 may be deposited under a trust agreement with an Illinois 31 bank of the contractor's choice and subject to the approval 32 of the construction agency. The contractor shall receive any -34- LRB9002279DNsb 1 interest on the deposited amount. Upon application by the 2 contractor, the trust agreement must contain, at a minimum, 3 the following provisions: 4 (1) the amount to be deposited subject to the 5 trust; 6 (2) the terms and conditions of payment in case of 7 default by the contractor; 8 (3) the termination of the trust agreement upon 9 completion of the contract; and 10 (4) the contractor shall be responsible for 11 obtaining the written consent of the bank trustee and for 12 any costs or service fees. 13 The trust agreement may, at the discretion of the 14 construction agency and upon request of the contractor, 15 become effective at the time of the first partial payment in 16 accordance with existing statutes and rules of the Board. 17 Section 30-30. Contracts in excess of $250,000. For 18 construction contracts in excess of $250,000, separate 19 specifications shall be prepared for all equipment, labor, 20 and materials in connection with the following 5 subdivisions 21 of the work to be performed: 22 (1) plumbing; 23 (2) heating, piping, refrigeration, and automatic 24 temperature control systems, including the testing and 25 balancing of those systems; 26 (3) ventilating and distribution systems for 27 conditioned air, including the testing and balancing of 28 those systems; 29 (4) electric wiring; and 30 (5) general contract work. 31 The specifications must be so drawn as to permit separate 32 and independent bidding upon each of the 5 subdivisions of 33 work. All contracts awarded for any part thereof shall award -35- LRB9002279DNsb 1 the 5 subdivisions of work separately to responsible and 2 reliable persons, firms, or corporations engaged in these 3 classes of work. The contracts, at the discretion of the 4 construction agency, may be assigned to the successful bidder 5 on the general contract work or to the successful bidder on 6 the subdivision of work designated by the construction agency 7 before the bidding as the prime subdivision of work, provided 8 that all payments will be made directly to the contractors 9 for the 5 subdivisions of work upon compliance with the 10 conditions of the contract. A contract may be let for one or 11 more buildings in any project to the same contractor. The 12 specifications shall require, however, that unless the 13 buildings are identical, a separate price shall be submitted 14 for each building. The contract may be awarded to the lowest 15 responsible bidder for each or all of the buildings included 16 in the specifications. 17 Section 30-35. Expenditure in excess of contract price. 18 (a) Germaneness. No funds in excess of the contract 19 price may be obligated or expended unless the additional work 20 to be performed or materials to be furnished is germane to 21 the original contract. Even if germane to the original 22 contract, no additional expenditures or obligations may, in 23 their total combined amounts, be in excess of the percentages 24 of the original contract amount set forth in subsection (b) 25 unless they have received the prior written approval of the 26 construction agency. In the event that the total of the 27 combined additional expenditures or obligations exceeds the 28 percentages of the original contract amount set forth in 29 subsection (b), the construction agency shall investigate all 30 the additional expenditures or obligations in excess of the 31 original contract amount and shall in writing approve or 32 disapprove subsequent expenditures or obligations and state 33 in detail the reasons for the approval or disapproval. -36- LRB9002279DNsb 1 (b) Written determination required. When the contract 2 amount is no more than $75,000, the percentage shall be 9% 3 (maximum $6,750). When the contract amount is between 4 $75,001 and $200,000, the percentage shall be 7% of the 5 amount above $75,000 plus $6,750, but not to exceed 7% of 6 $200,000 (maximum $14,000). When the contract amount is 7 between $200,001 and $500,000, the percentage shall be 5% of 8 the amount above $200,000 plus $14,000, but not to exceed 5% 9 of $500,000 (maximum $25,000). When the contract amount is 10 in excess of $500,000, the percentage shall be 3% of the 11 amount above $500,000 plus $25,000. 12 Section 30-40. Certification. Any contract entered into 13 or expenditure of funds by a construction agency for 14 remodeling, renovation, or construction, involving an 15 expenditure in excess of $5,000, shall be subject to the 16 supervision of a licensed architect or engineer. No payment 17 shall be made for the remodeling, renovation, or construction 18 unless the vouchers or invoice for the work is accompanied by 19 a written certificate of the licensed architect or engineer 20 that the payment represents work satisfactorily completed, 21 labor, or materials incorporated in or stored at the site of 22 the work; provided, periodic payments can be made during the 23 course of the work upon a certificate of the licensed 24 architect or engineer indicating the proportionate amount of 25 the total work completed satisfactorily. 26 Section 30-45. Other Acts. This Article is subject to 27 applicable provisions of the following Acts: 28 (1) the Prevailing Wage Act; 29 (2) the Public Construction Bond Act; 30 (3) the Public Works Employment Discrimination Act; 31 (4) the Public Works Preference Act; 32 (5) the Employment of Illinois Workers on Public -37- LRB9002279DNsb 1 Works Act; 2 (6) the Public Contract Fraud Act; and 3 (7) the Illinois Construction Evaluation Act. 4 ARTICLE 35 5 PROFESSIONAL OR ARTISTIC SERVICES 6 Section 35-5. Applicability. All contracts for 7 professional or artistic services shall be procured in 8 accordance with the provisions of this Article. 9 Section 35-10. Authority. Each State agency shall have 10 the authority to procure its own professional or artistic 11 services. 12 Section 35-15. Method of source selection. 13 (a) Competitive selection procedures. Except as 14 provided in subsection (b) and Sections 20-25 and 20-30, all 15 State contracts for professional or artistic services of 16 $25,000 or more shall be awarded by a competitive request for 17 proposal process in accordance with this Section and Section 18 20-35. 19 (b) Other methods. The Board shall identify categories 20 of professional and artistic services and shall determine the 21 method of source selection that is in the best interests of 22 the State for each category. A State agency may award a 23 professional or artistic service contract by a method of 24 source selection other than the method designated by the 25 Board for that category of service only when justified in 26 writing to the Board and approved by the Board in advance of 27 the award. 28 (c) If a State agency awards a professional or artistic 29 service contract exceeding $25,000 to a party other than the 30 lowest bidder, the State purchasing officer must forward a -38- LRB9002279DNsb 1 written decision together with the contract notice of who the 2 lowest bidder was to the Board, which shall publish the 3 decision in the next issue of the Illinois Procurement 4 Bulletin. 5 Section 35-20. Uniformity in procurement. 6 (a) The Board shall develop, cause to be printed, and 7 distribute uniform documents for the solicitation, review, 8 and acceptance of all professional and artistic services. 9 (b) All State purchasing officers and their designees 10 shall use the uniform procedures and forms specified in this 11 Code for all professional and artistic services. 12 (c) These forms shall include in detail, in writing, at 13 least: 14 (1) a description of the goal to be achieved; 15 (2) the services to be performed; 16 (3) the need for the service; 17 (4) the qualifications that are necessary; and 18 (5) a plan for post-performance review. 19 Section 35-25. Uniformity in contract. 20 (a) The Board shall develop, cause to be printed, and 21 distribute uniform documents for the contracting of 22 professional and artistic services. 23 (b) All State purchasing officers and their designees 24 shall use these uniform contracts and forms in contracting 25 for all professional and artistic services. 26 (c) These contracts and forms shall include in detail, 27 in writing, at least: 28 (1) the detail listed in subsection (c) of Section 29 35-20; 30 (2) the duration of the contract, with a schedule 31 of delivery, when applicable; 32 (3) the method for charging and measuring cost -39- LRB9002279DNsb 1 (hourly, per day, etc.); 2 (4) the rate of remuneration; and 3 (5) the maximum price. 4 Section 35-35. Subcontractors. 5 (a) Use specified. Any contract for professional or 6 artistic services shall state whether the services of a 7 subcontractor will be used. The contract shall include the 8 names and addresses of all subcontractors and the anticipated 9 amount of money that they will receive under the contract. 10 (b) Amendment. If at any time a contractor for 11 professional or artistic services that had not intended to 12 use the services of a subcontractor decides to use a 13 subcontractor, the contractor and the State agency shall file 14 an amendment to the original contract with the Comptroller 15 stating the names and addresses of all subcontractors and the 16 anticipated amount of money that they will receive under the 17 original contract. 18 ARTICLE 40 19 REAL PROPERTY AND CAPITAL IMPROVEMENT LEASES 20 Section 40-5. Applicability. All leases for real 21 property or capital improvements, including office and 22 storage space, buildings, and other facilities for State 23 agencies, shall be procured in accordance with the provisions 24 of this Article. 25 Section 40-10. Authority. State purchasing officers 26 shall have the authority to procure leases for real property 27 or capital improvements, except as that authority may be 28 limited by the Board or delegated by the State purchasing 29 officer in accordance with Section 10-15. -40- LRB9002279DNsb 1 Section 40-15. Method of source selection. 2 (a) Request for information. Except as provided in 3 subsections (b) and (c), all State contracts for leases of 4 real property or capital improvements shall be awarded by a 5 request for information process in accordance with Section 6 40-20. 7 (b) Other methods. A request for information process 8 need not be used in procuring any of the following leases: 9 (1) Property of less than 10,000 square feet. 10 (2) Rent of less than $100,000 per year. 11 (3) Duration of less than one year that cannot be 12 renewed. 13 (4) Specialized space available at only one 14 location. 15 (c) Leases with governmental units. Leases with other 16 governmental units may be negotiated without using the 17 request for information process when deemed by the Board to 18 be in the best interest of the State. 19 Section 40-20. Request for information. 20 (a) Conditions for use. Leases shall be procured by 21 request for information except as otherwise provided in 22 Section 40-15. 23 (b) Form. A request for information shall be issued and 24 shall include: 25 (1) the type of property to be leased; 26 (2) the proposed uses of the property; 27 (3) the duration of the lease; 28 (4) the preferred location of the property; and 29 (5) a general description of the configuration 30 desired. 31 (c) Public notice. Public notice of the request for 32 information for the availability of real property to lease 33 shall be published in the Illinois Procurement Bulletin at -41- LRB9002279DNsb 1 least 28 days before the date set forth in the request for 2 receipt of responses and shall also be published in similar 3 manner in a newspaper of general circulation in the community 4 or communities where the using agency is seeking space. 5 (d) Response. The request for information response 6 shall consist of written information sufficient to show that 7 the respondent can meet minimum criteria set forth in the 8 request. State purchasing officers may enter into 9 discussions with respondents for the purpose of clarifying 10 State needs and the information supplied by the respondents. 11 On the basis of the information supplied and discussions, if 12 any, a State purchasing officer shall make a written 13 determination identifying the responses that meet the minimum 14 criteria set forth in the request for information. 15 Negotiations shall be entered into with all qualified 16 respondents for the purpose of securing a lease that is in 17 the best interest of the State. A written report of the 18 negotiations shall be retained in the lease files and shall 19 include the reasons for the final selection. All leases 20 shall be reduced to writing and filed in accordance with the 21 provisions of Section 20-80. 22 Section 40-25. Length of leases. 23 (a) Maximum term. Leases shall be for a term not to 24 exceed 10 years and shall include a termination option in 25 favor of the State after 5 years. 26 (b) Renewal. Leases may include a renewal option. An 27 option to renew may be exercised only when a State purchasing 28 officer determines in writing that renewal is in the best 29 interest of the State. 30 (c) Subject to appropriation. All leases shall recite 31 that they are subject to termination and cancellation in any 32 year for which the General Assembly fails to make an 33 appropriation to make payments under the terms of the lease. -42- LRB9002279DNsb 1 Section 40-30. Purchase option. Initial leases of all 2 space in entire, free-standing buildings shall include an 3 option to purchase exerciseable by the State. 4 Section 40-35. Rent without occupancy. Except when 5 deemed by the Board to be in the best interest of the State, 6 no State agency may incur rental obligations before occupying 7 the space rented. 8 Section 40-40. Local site preferences. Upon the request 9 of the chief executive officer of a unit of local government, 10 leasing preferences may be given to sites located in 11 enterprise zones, tax increment districts, or redevelopment 12 districts. 13 Section 40-45. Repealer. This Article is repealed May 14 1, 1998. 15 ARTICLE 45 16 PREFERENCES 17 Section 45-5. Procurement preferences. To promote 18 business and employment opportunities in Illinois, 19 procurement preferences are established and shall be 20 applicable to any procurement made under this Code. 21 Section 45-10. Resident bidders. 22 (a) Amount of preference. When a contract is to be 23 awarded to the lowest responsible bidder, a resident bidder 24 shall be allowed a preference as against a non-resident 25 bidder from any state that gives or requires a preference to 26 bidders from that state. The preference shall be equal to 27 the preference given or required by the state of the 28 non-resident bidder. Further, if only non-resident bidders -43- LRB9002279DNsb 1 are bidding, the purchasing agency is within its right to 2 specify that Illinois labor and manufacturing locations be 3 used as a part of the manufacturing process, if applicable. 4 This specification may be negotiated as part of the 5 solicitation process. 6 (b) Residency. A resident bidder is a person authorized 7 to transact business in this State and having a bona fide 8 establishment for transacting business within this State 9 where it was actually transacting business on the date when 10 any bid for a public contract is first advertised or 11 announced. A resident bidder includes a foreign corporation 12 duly authorized to transact business in this State that has a 13 bona fide establishment for transacting business within this 14 State where it was actually transacting business on the date 15 when any bid for a public contract is first advertised or 16 announced. 17 (c) Federal funds. This Section does not apply to any 18 contract for any project as to which federal funds are 19 available for expenditure when its provisions may be in 20 conflict with federal law or federal regulation. 21 Section 45-15. Soybean oil-based ink. 22 (a) Contracts requiring the procurement of printing 23 services shall specify the use of soybean oil-based ink 24 unless a State purchasing officer determines that another 25 type of ink is required to assure high quality and reasonable 26 pricing of the printed product. 27 (b) All other printing done by or for the State shall 28 use soybean oil-based ink unless the agency by or for whom 29 the printing is done determines that another type of ink is 30 required to assure high quality and reasonable pricing of the 31 printed product. Printing done by or for the State in 32 soybean oil-based ink shall state, if practical, that soybean 33 oil-based ink was used. -44- LRB9002279DNsb 1 Section 45-20. Recycled materials. When a public 2 contract is to be awarded to the lowest responsible bidder, 3 an otherwise qualified bidder who will fulfill the contract 4 through the use of products made of recycled materials may, 5 on a pilot basis or in accordance with a pilot study, be 6 given preference over other bidders unable to do so, provided 7 that the cost included in the bid of products made of 8 recycled materials is not more than 10% greater than the cost 9 of products not made of recycled materials. 10 Section 45-25. Recyclable paper. All paper purchased 11 for use by State agencies must be recyclable paper unless 12 recyclable paper cannot be used to meet the requirements of 13 the State agencies. State agencies shall determine their 14 paper requirements to allow the use of recyclable paper 15 whenever possible, including without limitation using plain 16 paper rather than colored paper that is not recyclable. 17 Section 45-30. Correctional industries. All articles, 18 materials, industry related services, food stuffs, and 19 supplies that are produced or manufactured by persons 20 confined in institutions and facilities of the Department of 21 Corrections shall be given preference by purchasing agencies 22 procuring those items. 23 Section 45-35. Sheltered workshops for the severely 24 handicapped. 25 (a) Qualification. Supplies and services may be 26 procured without advertising or calling for bids from any 27 qualified not-for-profit agency for the severely handicapped 28 that: 29 (1) complies with Illinois laws governing private 30 not-for-profit organizations; 31 (2) is certified as a sheltered workshop by the -45- LRB9002279DNsb 1 Wage and Hour Division of the United States Department of 2 Labor; and 3 (3) meets the Department of Rehabilitation Services 4 (until July 1, 1997 and the Department of Human Services 5 on and after July 1, 1997) just standards for 6 rehabilitation facilities. 7 (b) Participation. To participate, the not-for-profit 8 agency must have indicated an interest in providing the 9 supplies and services, must meet the specifications and needs 10 of the using agency, and must set a fair market price. 11 (c) Committee. There is created within the Department 12 of Central Management Services a committee to facilitate the 13 purchase of products and services of persons so severely 14 handicapped by a physical or mental disability that they 15 cannot engage in normal competitive employment. The 16 committee shall consist of the Director of Central Management 17 Services, the Director of Mental Health and Developmental 18 Disabilities until July 1, 1997, the Director of 19 Rehabilitation Services until July 1, 1997, the Director of 20 Human Services on and after July 1, 1997, and 2 21 representatives from private business and 2 public members 22 all appointed by the Governor who are knowledgeable in the 23 needs and concerns of rehabilitation facilities in Illinois. 24 The public members shall serve 2 year terms, commencing upon 25 appointment and every 2 years thereafter. A public member 26 may be reappointed, and vacancies may be filled by 27 appointment for the completion of the term. The members 28 shall serve without compensation but shall be reimbursed for 29 expenses at a rate equal to that of State employees on a per 30 diem basis by the Department of Central Management Services. 31 All members shall be entitled to vote on issues before the 32 committee. 33 The committee shall have the following powers and duties: 34 (1) To request from any State agency information as -46- LRB9002279DNsb 1 to product specification and service requirements in 2 order to carry out its purpose. 3 (2) To meet quarterly or more often as necessary to 4 carry out its purposes. 5 (3) To request a quarterly report from each 6 participating qualified not-for-profit agency for the 7 severely handicapped describing the volume of sales for 8 each product or service sold under this Section. 9 (4) To prepare a report for the Governor annually. 10 (5) To prepare a publication that lists all 11 supplies and services currently available from any 12 qualified not-for-profit agency for the severely 13 handicapped. This list and any revisions shall be 14 distributed to all purchasing agencies. 15 (6) To encourage diversity in supplies and services 16 provided by qualified not-for-profit agencies for the 17 severely handicapped and discourage unnecessary 18 duplication or competition among facilities. 19 (7) To develop guidelines to be followed by 20 qualifying agencies for participation under the 21 provisions of this Section. The guidelines shall be 22 developed within 6 months after the effective date of 23 this Code and made available on a nondiscriminatory basis 24 to all qualifying agencies. 25 (8) To review all bids submitted under the 26 provisions of this Section and reject any bid for any 27 purchase that is determined to be substantially more than 28 the purchase would have cost had it been competitively 29 bid. 30 (d) Former committee. The committee created under 31 subsection (c) shall replace the committee created under 32 Section 7-2 of the Illinois Purchasing Act, which shall 33 continue to operate until the appointments under subsection 34 (c) are made. -47- LRB9002279DNsb 1 Section 45-37. Purchases from qualified private business 2 with a supported employment work force. A State agency may 3 buy products and services, without advertising or using 4 competitive procedures, from a qualified private business 5 that: 6 (1) complies with Illinois laws governing private, 7 for-profit enterprises; 8 (2) employs individuals meeting the definition of 9 supported employee; 10 (3) provides necessary supports to its supported 11 employees to assist them in maintaining their employment; 12 (4) provides its employees with an integrated 13 setting in which: 14 (A) at least 5% and not more than 20% of 15 employees are supported employees approved by the 16 Department of Rehabilitation Services or the 17 Department of Human Services; 18 (B) most interpersonal interactions of a 19 supported employment worker that are in or 20 associated with the work place are with employees of 21 that work place who are not supported employment 22 workers; and 23 (C) most (at least 50%) of the work expended 24 to produce the amount of the goods and services to 25 be sold to the State is provided by supported 26 employees; 27 (5) completes a Bidders Application form that is on 28 file with the Department of Central Management Services; 29 and 30 (6) meets the bid specifications or the needs of 31 the purchasing agency at a fair market price. 32 Those businesses must file a quarterly report with 33 Department of Central Management Services listing all 34 contracts with State agencies. -48- LRB9002279DNsb 1 The State Use Committee is responsible for interpreting 2 the provisions of this Section and for monitoring and making 3 decisions regarding contracts under this Section. 4 Section 45-40. Gas mileage. 5 (a) Specification. Contracts for the purchase or lease 6 of new passenger automobiles, other than station wagons, 7 vans, four-wheel drive vehicles, emergency vehicles, and 8 police and fire vehicles, shall specify the procurement of a 9 model that, according to the most current mileage study 10 published by the U.S. Environmental Protection Agency, can 11 achieve at least the minimum average fuel economy in miles 12 per gallon imposed upon manufacturers of vehicles under Title 13 V of The Motor Vehicle Information and Cost Savings Act. 14 (b) Exemptions. The State purchasing officer may exempt 15 procurements from the requirement of subsection (a) when 16 there is a demonstrated need, submitted in writing, for an 17 automobile that does not meet the minimum average fuel 18 economy standards. The Board shall promulgate rules for 19 determining need consistent with the intent of this Section. 20 Section 45-45. Small businesses. 21 (a) Set-asides. The Board has authority to designate as 22 small business set-asides a fair proportion of construction, 23 supply, and service contracts for award to small businesses 24 in Illinois. Advertisements for bids or offers for those 25 contracts shall specify designation as small business 26 set-asides. In awarding the contracts, only bids or offers 27 from qualified small businesses shall be considered. 28 (b) Small business. "Small business" means a business 29 that is independently owned and operated and that is not 30 dominant in its field of operation. The Board shall 31 establish a detailed definition by rule, using in addition to 32 the foregoing criteria other criteria, including the number -49- LRB9002279DNsb 1 of employees and the dollar volume of business. When 2 computing the size status of a bidder, annual sales and 3 receipts of the bidder and all of its affiliates shall be 4 included. The maximum number of employees and the maximum 5 dollar volume that a small business may have under the rules 6 promulgated by the Board may vary from industry to industry 7 to the extent necessary to reflect differing characteristics 8 of those industries, subject to the following limitations: 9 (1) No wholesale business is a small business if 10 its annual sales for its most recently completed fiscal 11 year exceed $7,500,000. 12 (2) No retail business or business selling services 13 is a small business if its annual sales and receipts 14 exceed $1,500,000. 15 (3) No manufacturing business is a small business 16 if it employs more than 250 persons. 17 (4) No construction business is a small business if 18 its annual sales and receipts exceed $3,000,000. 19 (c) Fair proportion. For the purpose of subsection (a), 20 a fair proportion of construction contracts shall be no less 21 than 25% nor more than 40% of the annual total contracts for 22 construction. 23 (d) Withdrawal of designation. A small business 24 set-aside designation may be withdrawn by the purchasing 25 agency when deemed in the best interests of the State. Upon 26 withdrawal, all bids or offers shall be rejected, and the 27 bidders or offerors shall be notified of the reason for 28 rejection. The contract shall then be awarded in accordance 29 with this Code without the designation of small business 30 set-aside. 31 (e) Small business specialist. The Board shall 32 designate a State purchasing officer who will be responsible 33 for engaging an experienced contract negotiator to serve as 34 its small business specialist, whose duties shall include: -50- LRB9002279DNsb 1 (1) Compiling and maintaining a comprehensive 2 bidders list of small businesses. In this duty, he or 3 she shall cooperate with the Federal Small Business 4 Administration in locating potential sources for various 5 products and services. 6 (2) Assisting small businesses in complying with 7 the procedures for bidding on State contracts. 8 (3) Examining requests from State agencies for the 9 purchase of property or services to help determine which 10 invitations to bid are to be designated small business 11 set-asides. 12 (4) Making recommendations to the Board for the 13 simplification of specifications and terms in order to 14 increase the opportunities for small business 15 participation. 16 (5) Assisting in investigations by purchasing 17 agencies to determine the responsibility of bidders on 18 small business set-asides. 19 (f) Small business annual report. The State purchasing 20 officer designated under subsection (e) shall annually before 21 December 1 report in writing to the General Assembly 22 concerning the awarding of contracts to small businesses. 23 The report shall include the total value of awards made in 24 the preceding fiscal year under the designation of small 25 business set-aside. 26 The requirement for reporting to the General Assembly 27 shall be satisfied by filing copies of the report as required 28 by Section 3.1 of the General Assembly Organization Act. 29 Section 45-50. Illinois agricultural products. In 30 awarding contracts requiring the procurement of agricultural 31 products, preference may be given to an otherwise qualified 32 bidder or offeror who will fulfill the contract through the 33 use of agricultural products grown in Illinois. -51- LRB9002279DNsb 1 Section 45-55. Corn-based plastics. In awarding 2 contracts requiring the procurement of plastic products, 3 preference may be given to an otherwise qualified bidder or 4 offeror who will fulfill the contract through the use of 5 plastic products made from Illinois corn by-products. 6 Section 45-60. Vehicles powered by agricultural 7 commodity-based fuel. In awarding contracts requiring the 8 procurement of vehicles, preference may be given to an 9 otherwise qualified bidder or offeror who will fulfill the 10 contract through the use of vehicles powered by ethanol 11 produced from Illinois corn or biodiesel fuels produced from 12 Illinois soybeans. 13 Section 45-65. Additional preferences. This Code is 14 subject to applicable provisions of: 15 (1) the Public Purchases in Other States Act; 16 (2) the Illinois Mined Coal Act; 17 (3) the Steel Products Procurement Act; 18 (4) the Veterans Preference Act; and 19 (5) the Business Enterprise for Minorities, 20 Females, and Disabled Persons Act. 21 ARTICLE 50 22 PROHIBITIONS, RESTRICTIONS, AND PENALTIES 23 Section 50-5. Bribery. 24 (a) Prohibition. No person or business shall be awarded 25 a contract or subcontract under this Code who: 26 (1) has been convicted under the laws of Illinois 27 or any other state of bribery or attempting to bribe an 28 officer or employee of the State of Illinois or any other 29 state in that officer's or employee's official capacity; 30 or -52- LRB9002279DNsb 1 (2) has made an admission of guilt of that conduct 2 that is a matter of record but has not been prosecuted 3 for that conduct. 4 (b) Businesses. No business shall be barred from 5 contracting with any unit of State or local government as a 6 result of a conviction under this Section of any employee or 7 agent of the business if the employee or agent is no longer 8 employed by the business and: 9 (1) the business has been finally adjudicated not 10 guilty; or 11 (2) the business demonstrates to the governmental 12 entity with which it seeks to contract, and that entity 13 finds that the commission of the offense was not 14 authorized, requested, commanded, or performed by a 15 director, officer, or high managerial agent on behalf of 16 the business as provided in paragraph (2) of subsection 17 (a) of Section 5-4 of the Criminal Code of 1961. 18 (c) Conduct on behalf of business. For purposes of this 19 Section, when an official, agent, or employee of a business 20 committed the bribery or attempted bribery on behalf of the 21 business and in accordance with the direction or 22 authorization of a responsible official of the business, the 23 business shall be chargeable with the conduct. 24 (d) Certification. Every bid submitted to and contract 25 executed by the State shall contain a certification by the 26 contractor that the contractor is not barred from being 27 awarded a contract or subcontract under this Section. A 28 contractor who makes a false statement, material to the 29 certification, commits a Class 3 felony. 30 Section 50-10. Felons. Unless otherwise provided, no 31 person or business convicted of a felony shall do business 32 with the State of Illinois or any State agency from the date 33 of conviction until one year after the date of completion of -53- LRB9002279DNsb 1 the sentence for that felony, unless no person held 2 responsible by a prosecutorial office for the facts upon 3 which the conviction was based continues to have any 4 involvement with the business. 5 Section 50-15. Conflicts of interest. 6 (a) Prohibition. It is unlawful for any person holding 7 an elective office in this State, holding a seat in the 8 General Assembly, or appointed to or employed in any of the 9 offices or agencies of State government, and who receives 10 compensation for such employment in excess of 60% of the 11 salary of the Governor of the State of Illinois, or who is an 12 officer or employee of the Capital Development Board or the 13 Illinois Toll Highway Authority, or who is the spouse or 14 minor child of any such person to have or acquire any 15 contract, or any direct pecuniary interest in any contract 16 therein, whether for stationery, printing, paper, or any 17 services, materials, or supplies, that will be wholly or 18 partially satisfied by the payment of funds appropriated by 19 the General Assembly of the State of Illinois or in any 20 contract of the Capital Development Board or the Illinois 21 Toll Highway Authority. 22 (b) Interests. It is unlawful for any firm, 23 partnership, association, or corporation in which any person 24 listed in subsection (a) is entitled to receive (i) more than 25 7 1/2% of the total distributable income, or (ii) an amount 26 in excess of the salary of the Governor, whichever is lower, 27 to have or acquire any such contract or direct pecuniary 28 interest therein. 29 (c) Combined interests. It is unlawful for any firm, 30 partnership, association, or corporation in which any person 31 listed in subsection (a) together with his or her spouse or 32 minor children is entitled to receive (i) more than 15%, in 33 the aggregate, of the total distributable income, or (ii) an -54- LRB9002279DNsb 1 amount in excess of 2 times the Governor's salary, whichever 2 is lower, to have or acquire any such contract or direct 3 pecuniary interest therein. 4 (d) Securities. Nothing in this Section invalidates the 5 provisions of any bond or other security previously offered 6 or to be offered for sale or sold by or for the State of 7 Illinois. 8 (e) Prior interests. This Section does not affect the 9 validity of any contract made between the State and an 10 officer or employee of the State or member of the General 11 Assembly, his or her spouse, minor child or any combination 12 of those persons if that contract was in existence before his 13 or her election or employment as an officer, member, or 14 employee. The contract is void, however, if it cannot be 15 completed within 6 months after the officer, member, or 16 employee takes office or is employed. 17 (f) Exceptions. 18 (1) Public aid payments. This Section does not 19 apply to payments made for a public aid recipient. 20 (2) Teaching. This Section does not apply to a 21 contract for personal services as a teacher or school 22 administrator between a member of the General Assembly or 23 his or her spouse, or a State officer or employee or his 24 or her spouse, and any school district, public community 25 college district, the University of Illinois, Southern 26 Illinois University, or any institution under the control 27 of the Board of Governors of State Colleges and 28 Universities or under the control of the Board of 29 Regents. 30 (3) Ministerial duties. This Section does not 31 apply to a contract for personal services of a wholly 32 ministerial character, including but not limited to 33 services as a laborer, clerk, typist, stenographer, page, 34 bookkeeper, receptionist, or telephone switchboard -55- LRB9002279DNsb 1 operator, made by a spouse or minor child of an elective 2 or appointive State officer or employee or of a member of 3 the General Assembly. 4 (4) Child and family services. This Section does 5 not apply to payments made to a member of the General 6 Assembly, a State officer or employee, his or her spouse 7 or minor child acting as a foster parent, homemaker, 8 advocate, or volunteer for or in behalf of a child or 9 family served by the Department of Children and Family 10 Services. 11 (g) Penalty. Any person convicted of a violation of 12 this Section is guilty of a business offense and shall be 13 fined not less than $1,000 nor more than $5,000. 14 Section 50-20. Negotiations. 15 (a) Prohibition. Except as provided in Section 50-25, 16 it is unlawful for any person employed in or on a continual 17 contractual relationship with any of the offices or agencies 18 of State government to participate in contract negotiations 19 on behalf of that office or agency with any firm, 20 partnership, association, or corporation with whom that 21 person has a contract for future employment or is negotiating 22 concerning possible future employment. 23 (b) Penalty. Any person violating this Section is 24 guilty of a business offense and shall be fined not less than 25 $1,000 and not more than $5,000. 26 Section 50-25. Exemptions. With the approval of the 27 administrative head of the State agency involved, the 28 Governor may exempt named individuals from the prohibitions 29 of Section 50-15 when, in his or her judgment, the public 30 interest in having the individual in the service of the State 31 outweighs the public policy evidenced in those Sections. An 32 exemption is not effective unless the Governor files with the -56- LRB9002279DNsb 1 Secretary of State and Comptroller a statement naming the 2 individual, setting forth all the pertinent facts that would 3 make those Sections applicable, setting forth the reasons for 4 the exemption, and declaring that the individual is exempted 5 from those Sections. The Governor shall publish notice of 6 the exemption in the Illinois Procurement Bulletin. 7 Section 50-30. Inducement. Any person who offers or 8 pays any money or other valuable thing to any person to 9 induce him or her not to bid for a State contract or as 10 recompense for not having bid on a State contract is guilty 11 of a Class 4 felony. Any person who accepts any money or 12 other valuable thing for not bidding for a State contract or 13 who withholds a bid in consideration of the promise for the 14 payment of money or other valuable thing is guilty of a Class 15 4 felony. 16 Section 50-35. Former employees. Former State employees 17 whose duties with the State were directly related to 18 procurement are prohibited from doing business that is 19 substantially similar to their prior duties with the State 20 agency formerly employing them for a period of 2 years from 21 the termination of their employment with the State. The 22 Board shall by rule define the nature of procurement 23 activities that are subject to this prohibition and the 24 meaning of "substantially similar" as it is used in this 25 Section. The Board shall not be authorized to grant any 26 waiver or exemption from this prohibition. 27 Section 50-40. Disclosures by contractors and bidders. 28 (a) All offers from responsive bidders or offerors with 29 an annual value of more than $5,000 shall be accompanied by 30 disclosure of the financial interests of the contractor, 31 bidder, or proposer. The financial disclosure of each -57- LRB9002279DNsb 1 successful bidder or offeror shall become part of the 2 publicly available contract or procurement file maintained by 3 the appropriate State purchasing officer. 4 (b) Disclosure by the responsive bidders or offerors 5 shall include any ownership or distributive income share that 6 is in excess of 5%, or an amount greater than 60% of the 7 annual salary of the Governor, of the bidding entity or its 8 parent entity, whichever is less, unless the contractor or 9 bidder is a publicly traded entity subject to federal 10 reporting, in which case it may submit its 10K. Disclosure 11 shall be prescribed by the applicable State purchasing 12 officer and must include at least the names, addresses, and 13 dollar or proportionate share of ownership of each person 14 identified in this Section, their instrument of ownership of 15 beneficial relationship, and notice of any potential conflict 16 of interest resulting from the current ownership or 17 beneficial relationship of each person identified in this 18 Section having in addition any of the following 19 relationships: 20 (1) State employment, currently or in the previous 21 3 years, including contractual employment of services. 22 (2) State employment of spouse, father, mother, 23 son, or daughter, including contractual employment for 24 services in the previous 2 years. 25 (3) Elective status; the holding of elective office 26 of the State of Illinois, the government of the United 27 States, or any unit of local government authorized by the 28 Constitution of the State of Illinois or the statutes of 29 the State of Illinois currently or in the previous 3 30 years. 31 (4) Relationship to anyone holding elective office 32 currently or in the previous 2 years; spouse, father, 33 mother, son, or daughter. 34 (5) Appointive office; the holding of any -58- LRB9002279DNsb 1 appointive government office of the State of Illinois, 2 the United States of America, or any unit of local 3 government authorized by the Constitution of the State of 4 Illinois or the statutes of the State of Illinois, which 5 office entitles the holder to compensation in excess of 6 expenses incurred in the discharge of that office 7 currently or in the previous 3 years. 8 (6) Relationship to anyone holding appointive 9 office currently or in the previous 2 years; spouse, 10 father, mother, son, or daughter. 11 (7) Employment, currently or in the previous 3 12 years, as or by any registered lobbyist of the State 13 government. 14 (8) Relationship to anyone who is or was a 15 registered lobbyist in the previous 2 years; spouse, 16 father, mother, son, or daughter. 17 (9) Compensated employment, currently or in the 18 previous 3 years, by any election or re-election 19 committee, registered with the Secretary of State or any 20 county clerk in the State of Illinois, or any political 21 action committee registered with either the Secretary of 22 State or the Federal Board of Elections. 23 (10) Relationship to anyone; spouse, father, 24 mother, son, or daughter; who is or was a compensated 25 employee in the last 2 years of any election or 26 re-election committee, registered with the Secretary of 27 State or any county clerk in the State of Illinois, or 28 any political action committee registered with the 29 Secretary of State or the Federal Board of Elections. 30 (c) The disclosure in subsection (b) is not intended 31 to prohibit or prevent any contract. The disclosure is meant 32 to fully and publicly disclose any potential conflict to 33 State purchasing officers, their designees, and executive 34 officers so they may adequately discharge their duty to -59- LRB9002279DNsb 1 protect the State. 2 (d) In the case of any contract for personal services in 3 excess of $50,000; any contract competitively bid in excess 4 of $250,000; any other contract in excess of $50,000; when a 5 potential for a conflict of interest is identified, 6 discovered, or reasonably suspected, it shall be reviewed and 7 commented on in writing by the Governor of the State of 8 Illinois or by an executive ethics board or commission he or 9 she might designate. The comment shall be returned to the 10 responsible State purchasing officer who must rule in writing 11 whether to void or allow the contract, bid, offer, or 12 proposal, weighing the best interest of the State of 13 Illinois. The comment and determination shall become a 14 publicly available part of the contract, bid, or proposal 15 file. 16 (e) These threshholds and disclosure do not relieve the 17 State purchasing officer or designee from reasonable care and 18 diligence for any contract, bid, offer, or proposal. The 19 State purchasing officer or designee shall be responsible for 20 using any reasonably known and publicly available information 21 to discover any undisclosed potential conflict of interest 22 and act to protect the best interest of the State of 23 Illinois. 24 (f) Inadvertent or accidental failure to fully disclose 25 shall render the contract, bid, proposal, or relationship 26 voidable by the State purchasing officer if he or she deems 27 it in the best interest of the State of Illinois and, at his 28 or her discretion, may be cause for debarment from future 29 contracts, bids, proposals, or relationships with the State 30 for a period of up to 2 years. 31 (g) Intentional, willful, or material failure to 32 disclose shall render the contract, bid, proposal, or 33 relationship voidable by the State purchasing officer if he 34 or she deems it in the best interest of the State of Illinois -60- LRB9002279DNsb 1 and shall result in debarment from future contracts, bids, 2 proposals, or relationships for a period of not less than 2 3 years and not more than 10 years. Reinstatement after 2 4 years and before 10 years must be reviewed and commented on 5 in writing by the Governor of the State of Illinois or by an 6 executive ethics board or commission he or she might 7 designate. The comment shall be returned to the responsible 8 State purchasing officer who must rule in writing whether and 9 when to reinstate. 10 (h) In addition, all disclosures shall note any other 11 current or pending contracts, proposals, leases, or other 12 ongoing procurement relationships the bidding, proposing, or 13 offering entity has with any other unit of State government 14 and shall clearly identify the unit and the contract, 15 proposal, lease, or other relationship. 16 Section 50-45. Disclosures by State employees and 17 officers. 18 (a) Contract negotiations. Any person participating in 19 the making of a contract, or who enters into a contract, on 20 behalf of an office or agency of State government with the 21 knowledge that his or her spouse, child, parent, or sibling 22 is entitled to receive (i) more than 7.5% of the total 23 distributable income of the other contracting party or (ii) 24 an amount in excess of the salary of the Governor, whichever 25 is lower, or in which that child, parent, or sibling, 26 together with his or her spouse or minor children, is 27 entitled to receive (i) more than 15%, in the aggregate, of 28 the total distributable income of the other contracting party 29 or (ii) an amount in excess of 2 times the salary of the 30 Governor, whichever is lower, shall immediately file a 31 written statement setting out the facts of the transaction. 32 The statement shall be filed with the administrative head of 33 the office or agency and be kept available for public -61- LRB9002279DNsb 1 inspection. A person failing to file a statement or filing a 2 false statement is guilty of a business offense and shall be 3 fined not less than $1,000 and not more than $5,000. Any 4 such contract is contrary to public policy and may be voided 5 at the option of the State unless it is shown to be in the 6 best interests of the State. Moreover, if fraud or 7 substantial monetary harm to the State results from the 8 nepotic element of the transaction, the government officer or 9 employee involved in the element is guilty of a Class A 10 misdemeanor. 11 (b) Other positions and contracts. Each State employee 12 is responsible for annually notifying his or her State 13 employer of contracts held by the employee or by the 14 employee's spouse and minor children and of other payroll 15 positions held by the employee. The State employee shall 16 notify his or her employer of any changes in this 17 notification at the time the changes occur. 18 Section 50-50. Identical bids. Every State agency that 19 obtains 2 or more identical bids under this Code shall inform 20 the Attorney General in writing of those facts within 30 days 21 after the disposition of all bids received in response for 22 bids, whether by the awarding of the contract or other 23 action. The Attorney General shall prescribe the form and 24 manner of notification. 25 Section 50-55. Reporting of anticompetitive practices. 26 When for any reason collusion or other anticompetitive 27 practices are suspected among any bidders or offerors, a 28 notice of the relevant facts shall be transmitted to the 29 Attorney General. 30 Section 50-58. Confidentiality. The chief procurement 31 officer or any State purchasing officer, designee, or -62- LRB9002279DNsb 1 executive officer who willfully uses or allows the use of 2 specifications, competitive bid documents, proprietary 3 competitive information, proposals, contracts, or selection 4 information to compromise the fairness or integrity of the 5 procurement, bidding, or contract process shall be subject to 6 discipline up to and including immediate dismissal, 7 regardless of the Personnel Code, and may in addition be 8 subject to criminal prosecution. 9 Section 50-60. Insider information. It is unlawful for 10 any current or former elected or appointed State official or 11 State employee to knowingly use confidential information 12 available only by virtue of that office or employment for 13 actual or anticipated personal gain or for the actual or 14 anticipated personal gain of another person. 15 Section 50-65. Supply inventory. Every State agency 16 shall inventory or stock no more than a 12-month need of 17 equipment, supplies, commodities, articles, and other items, 18 except as otherwise authorized by the State agency's 19 regulations. Every State agency shall periodically review 20 its inventory to ensure compliance with this Section. If, 21 upon review, an agency determines it has more than a 12-month 22 supply of any equipment, supplies, commodities, or other 23 items, the agency shall undertake transfers of the 24 oversupplied items or other action necessary to maintain 25 compliance with this Section. This Section shall not apply 26 to lifesaving medications, mechanical spare parts, and items 27 for which the supplier requires a minimum order stipulation. 28 Section 50-70. Void contracts. If any contract is 29 entered into or purchase or expenditure of funds is made in 30 violation of this Code, the rules promulgated under this 31 Code, or any other law, the contract may be declared void by -63- LRB9002279DNsb 1 the purchasing agency or may be ratified and affirmed, 2 provided the purchasing agency determines that ratification 3 is in the best interests of the State. If the contract is 4 ratified and affirmed, it shall be without prejudice to the 5 State's rights to any appropriate damages. 6 Section 50-75. Suspension and debarment. Any contractor 7 may be suspended for violation of this Code or for failure to 8 conform to specifications or terms of delivery. Suspension 9 shall be for cause and may be for a period of up to 2 years 10 at the discretion of the applicable State procurement 11 officer. Contractors may be debarred in accordance with 12 rules promulgated by the Board or as otherwise provided by 13 law. 14 Section 50-80. Additional provisions. This Code is 15 subject to applicable provisions of the following Acts: 16 (1) Article 33E of the Criminal Code of 1961; 17 (2) the Illinois Human Rights Act; 18 (3) the Discriminatory Club Act; 19 (4) the Illinois Governmental Ethics Act; 20 (5) the State Prompt Payment Act; 21 (6) the Public Officer Prohibited Activities Act; 22 and 23 (7) the Drug Free Workplace Act. 24 Section 50-85. Other violations. 25 (a) The chief procurement officer or any State 26 purchasing officer or designee who willfully violates or 27 allows the violation of this Code shall be subject to 28 discipline up to and including immediate dismissal, 29 regardless of the Personnel Code. 30 (b) Except as otherwise provided in this Code, whoever 31 violates this Code or the rules promulgated under it is -64- LRB9002279DNsb 1 guilty of a Class A misdemeanor. 2 ARTICLE 55 3 MISCELLANEOUS PROVISIONS 4 Section 55-5. References to repealed provisions. After 5 the effective date of this Act, all references to the 6 provisions of law repealed by this Act shall be construed, 7 where necessary and appropriate, as references to the 8 Illinois Procurement Code. 9 Section 55-10. Exclusive exercise of powers. On and 10 after 120 days following the effective date of this Act, the 11 powers granted under this Code shall be exercised exclusively 12 as granted under this Code, and no State agency may 13 concurrently exercise any such power, unless specifically 14 authorized otherwise by a later enacted law. This Code is 15 not intended to impair any contract entered into before the 16 effective date of this Act. 17 Section 55-15. Severability. If any provision of this 18 Code or any application of it to any person or circumstance 19 is held invalid, that invalidity shall not affect other 20 provisions or applications of this Code that can be given 21 effect without the invalid provision or application, and to 22 this end the provisions of this Code are declared to be 23 severable. 24 ARTICLE 95 25 AMENDATORY AND REPEALING PROVISIONS 26 Section 95-5. The Governmental Joint Purchasing Act is 27 amended by changing Section 3 as follows: -65- LRB9002279DNsb 1 (30 ILCS 525/3) (from Ch. 85, par. 1603) 2 Sec. 3. Any agreement of the governmental units which 3 desire to make joint purchases, one of the governmental units 4 shall conduct the letting of bids. Where the State of 5 Illinois is a party to the joint purchase agreement, the 6 Department of Central Management Services shall conduct the 7 letting of bids. Expenses of such bid-letting may be shared 8 by the participating governmental units in proportion to the 9 amount of personal property, supplies or services each unit 10 purchases. 11 When the State of Illinois is a party to the joint 12 purchase agreement, the acceptance of bids shall be in 13 accordance with the Illinois Procurement Code and rules 14 promulgated under that Code. When the State of Illinois is 15 not a party to the joint purchase agreement, the acceptance 16 of bids shall be governed by the agreement. 17 The personal property, supplies or services involved 18 shall be distributed or rendered directly to each 19 governmental unit taking part in the purchase. The person 20 selling the personal property, supplies or services may bill 21 each governmental unit separately for its proportionate share 22 of the cost of the personal property, supplies or services 23 purchased. 24 The credit or liability of each governmental unit shall 25 remain separate and distinct. Disputes between bidders and 26 governmental units shall be resolved between the immediate 27 parties. 28 (Source: P.A. 87-860.) 29 (15 ILCS 405/11 rep.) 30 (15 ILCS 405/15 rep.) 31 Section 95-10. The State Comptroller Act is amended by 32 repealing Sections 11 and 15. -66- LRB9002279DNsb 1 (20 ILCS 5/29 rep.) 2 (20 ILCS 5/30 rep.) 3 (20 ILCS 405/35.7b rep.) 4 (20 ILCS 405/67.01 rep.) 5 (20 ILCS 405/67.04 rep.) 6 Section 95-15. The Civil Administrative Code of Illinois 7 is amended by repealing Sections 29, 30, 35.7b, 67.01, and 8 67.04. 9 (20 ILCS 1015/13 rep.) 10 Section 95-20. The Public Employment Office Act is 11 amended by repealing Section 13. 12 (30 ILCS 505/Act rep.) 13 Section 95-25. The Illinois Purchasing Act is repealed. 14 (30 ILCS 510/Act rep.) 15 Section 95-30. The State Paper Purchasing Act is 16 repealed. 17 (30 ILCS 515/Act rep.) 18 Section 95-35. The State Printing Contracts Act is 19 repealed. 20 (30 ILCS 615/Act rep.) 21 Section 95-40. The State Vehicle Mileage Act is 22 repealed. 23 ARTICLE 99 24 EFFECTIVE DATE 25 Section 99-5. Effective date. This Act takes effect upon 26 becoming law. -67- LRB9002279DNsb 1 INDEX 2 Statutes amended in order of appearance 3 New Act 4 30 ILCS 525/3 from Ch. 85, par. 1603 5 15 ILCS 405/11 rep. 6 15 ILCS 405/15 rep. 7 20 ILCS 5/29 rep. 8 20 ILCS 5/30 rep. 9 20 ILCS 405/35.7b rep. 10 20 ILCS 405/67.01 rep. 11 20 ILCS 405/67.04 rep. 12 20 ILCS 1015/13 rep. 13 30 ILCS 505/Act rep. 14 30 ILCS 510/Act rep. 15 30 ILCS 515/Act rep. 16 30 ILCS 615/Act rep.